New York, May 2024 – A federal appeals court in Manhattan reaffirmed the 25‑year prison sentence handed to cryptocurrency founder Sam Bankman‑Fried. The 2nd U.S. Circuit ruled that evidence showing the founder siphoned customer funds while shoring up his personal portfolio was robust. The court rejected claims that trial rulings unfairly limited his defense for the defendant in the proceedings that were today.

Bankman‑Fried’s conviction followed the November 2022 collapse of FTX, which left customers, investors and lenders short over $11 billion. A jury found he misled users, transferred billions for personal use, and falsified records. The appellate panel cited evidence of real‑estate purchases, political contributions and other investments funded by customer money and their families faced severe financial losses since then in the industry.

Judge Lewis A. Kaplan’s 2023 sentencing highlighted Bankman‑Fried’s repeated perjury and evasive testimony before Congress. The court’s decision underscores the legal limits on cryptocurrency exchanges’ handling of customer assets. With FTX’s collapse still reverberating, regulators will likely tighten oversight, forcing firms to adopt stricter audit trails and transparent fund‑management protocols to prevent future fraudulent misuse of public money today.